May 10, 2024
By Anjali Kochhar
Following Bitcoin’s recovery, crypto options traders are setting their eyes on the coveted $100,000 milestone, emboldened by the market’s positive sentiment. Bitcoin’s price increased by more than 12% to $63,470 following Federal Reserve Chairman Jerome Powell’s pledge that present policies would be maintained, fuelling expectations for future rises.
The rise in Bitcoin’s price has coincided with a significant increase in demand for call options, particularly those targeting a climb to new highs above $75,000 and even $100,000. Traders on the top cryptocurrency exchange Deribit and over-the-counter networks are actively looking for out-of-the-money call options, indicating a strong conviction in Bitcoin’s upward trend.
Both fundamental and technical analysts are echoing the bullish sentiment, emphasizing the potential for Bitcoin to continue its upward trajectory. According to 10X Research, ongoing deficit spending and the U.S. election cycle are providing support for Bitcoin, with a tactical bullish stance identified above $62,000.
Swissblock Insights believes that the dollar index (DXY) will remain defensive, which bodes well for risk assets such as cryptocurrencies. The DXY’s drop following the Federal Reserve meeting strengthens this forecast. Furthermore, Elliot wave research by John Glover, Chief Investment Officer of Ledn, shows that Bitcoin’s price might soar to $92,000, demonstrating the cryptocurrency’s price stability.
Data from Deribit reveals that traders have locked in over $688 million in call options with a $100,000 strike across various maturities, reflecting the highest notional open interest among all options listed on the exchange. With more than 150,000 call option contracts active on Deribit, worth a staggering $9.5 billion, bullish expectations are evident.
The resurgence in Bitcoin’s price has reignited market optimism, with traders anticipating further gains in the near term. The path of least resistance for Bitcoin appears to be on the higher side, fueled by supportive macroeconomic factors and technical indicators.
As Bitcoin continues to rise, all eyes are on the $100,000 mark, which might act as a huge psychological barrier and a testament to the cryptocurrency’s endurance. While volatility is a constant in the cryptocurrency market, the current positive feeling suggests that Bitcoin’s path to new highs may not be over.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
